Spending could be European crisis’ next victim

http://www.msnbc.msn.com/id/37436141/ns/business-eye_on_the_economy/

Americans do not want to wake up from this dream economy, but reality will eventually set in, and we will all realize how bad off we really are.

ECB warns of more bank loan losses

https://news.fidelity.com/news/news.jhtml?cat=Top.Investing.RT&articleid=201005310153RTRSNEWSCOMBINED_TRE64R35J_1&IMG=Y

Ok, I will send out invites for the Euro going away party.

Shell Adds Shale

http://www.forbes.com/2010/05/28/royal-dutch-shell-adds-shale-assets-marketnewsvideo.html

Royal Dutch Shell is scooping up a privately held gas company.

Dark Horse

http://www.forbes.com/global/2010/0607/companies-cadila-healthcare-india-pankaj-patel-dark-horse.html?boxes=Homepagetoprated

Interesting Indian Pharmaceutical Company.

It's Time to Cut Our National Budget

http://www.fool.com/investing/general/2010/05/28/its-time-to-cut-our-national-budget.aspx?source=ihpsitota0000001&lidx=2

NO. $H!T.

India's economy grows at fastest pace in 2 years

http://finance.yahoo.com/news/Indias-economy-grows-at-apf-1347952416.html?x=0&sec=topStories&pos=6&asset=&ccode=

Good news for India.

UPDATE 1-Australians keep shopping, rates still on hold

http://www.iii.co.uk/news/?type=afxnews&articleid=7919387&format=raw&action=article

They just keep shopping, but the article complains that not enough people can get loans for houses, since that worked out so well everyone else ya know?

OIL FUTURES: Crude Rises Despite Spain Downgrade; Trade Muted

http://www.marketwatch.com/story/oil-futures-crude-rises-despite-spain-downgrade-trade-muted-2010-05-31

Euro Declines on Concerns Over Spending Cuts and Bank Losses

http://www.businessweek.com/news/2010-05-31/euro-declines-on-concerns-over-spending-cuts-and-bank-losses.html


"The euro extended its longest monthly drop versus the dollar in 10 years on concerns Europe’s efforts to reduce budget deficits will derail the region’s economies as the credit crisis shakes the banking system."

Fed's Evans says policy easing was not enough

http://www.reuters.com/article/idUSTRE6500D620100601

The genius thinks we should have given the banks more money.

5/25/10 Marc Faber on Bloomberg: Bearish on Everything

http://www.youtube.com/watch?v=aPZ44PLALmU&feature=channel

Marc Faber makes me laugh

5/24/10 Peter Schiff on CNBC: Is U.S. the Next Greece or Japan?

http://www.youtube.com/watch?v=z-MwSKLxYow&feature=channel

Rio’s Chief Says Mining Tax Puts Half Its Balance Sheet at Risk

http://www.bloomberg.com/apps/news?pid=20601087&sid=afLxcXDqDxHg&pos=5

Miners do not have to mine, and Australians will learn that soon enough if this legislation is passed.

Uncertainty Reigns Supreme

http://www.europac.net/externalframeset.asp?from=home&id=18788&type=browne

No wonder there is so much volatility in the markets.

Diet drugs Alli and Xenical may cause liver failure

http://www.walletpop.com/blog/2010/05/29/diet-drugs-alli-and-xenical-may-cause-liver-failure/


Bad news for the makers of these drugs.

Buffett's a Dividend Investor, Why Aren't You?

http://www.fool.com/investing/dividends-income/2010/05/27/buffetts-a-dividend-investor-why-arent-you.aspx?source=ihpsitas0000001&lidx=4

I think investing in companies that pay dividends is the way to go, mostly because I think these companies are actually paying attention to the people who are investing in them.

U.K. Budget Cuts Will Target Welfare

http://online.wsj.com/article/SB10001424052748704032704575268640259483012.html

Interesting article on the unintended consequences of the welfare state that no one wants to talk about.

Warning: Crash dead ahead. Sell. Get liquid. Now.

http://www.marketwatch.com/story/crash-is-dead-ahead-sell-get-liquid-now-2010-05-25?pagenumber=2

Wow, he is more pessimistic than I am and I do not agree with him on everything, but this article is pretty decent IMHO.

Poll finds debt-dogged Americans stressed out

http://finance.yahoo.com/news/Poll-finds-debtdogged-apf-3179586089.html?x=0&sec=topStories&pos=1&asset=&ccode=

It sure does not stress the government out.

Bernanke, Trichet see key emerging economies role

http://www.reuters.com/article/idUSTRE64U09L

Japan Manufacturing Rises

http://online.wsj.com/article/SB10001424052748703703704575277243392410822.html

New York Senator Proposes Tax to Bring Jobs

http://www.keyc.com/node/37899

Good intentions, bad results. The companies can just outsource everything so they are exempt from this.

History might not repeat itself, but it sure does rhyme.

"The budget should be balanced,

the Treasury should be refilled,

public debt should be reduced,

the arrogance of officialdom should be tempered and controlled,

and the assistance to foreign lands should be curtailed lest Rome become bankrupt.

People must again learn to work, instead of living on public assistance."

- Cicero, 55 BC

Berkshire confirms Buffett subpoenaed to testify

http://www.reuters.com/article/idUSTRE64R4I720100528

Buffett has to testify on what caused the 2008 financial crisis in front of a government commission that does not even disclose its own finances. He is testifying in regards to how government bond ratings agencies contributed to the crisis.

How about how government created the crisis and are now making it worse? I hope he has the stones to tell these idiots that.

May's Big Selloff Could Be Just the Beginning

http://online.wsj.com/article/SB127517060464598905.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

"Are you ready for a lot more turmoil?

You had better be -- because there's a good chance that's what you're going to get.

Nobody knows for certain, of course. All stock-market predictions need to be taken with a little salt. But there are reasons to suspect that the sudden plunges of the past few weeks may be unhappy omens of what's to come."

Gold and Silver Insurance

http://www.kitco.com/ind/Ruff/ruff_may242010.html

Good advice for the balanced investor

Jaguar-Land Rover to begin assembling cars in China

http://www.reuters.com/article/idUSLDE64R1RY20100528

More Manufacturing jobs for China.

Threat Level Privacy, Crime and Security Online Previous post Next post NSA Shields Government Networks With More AT&T Secret Rooms Read More http:/

http://www.wired.com/threatlevel/2009/07/einstein/

Do I think the government is monitoring me? No. Do I think they have the right to monitor me? No. Do they have the power to? Yes, without a warrant. Thank you National Security.

"The Obama administration has decided to proceed with a classified Bush administration plan to let the NSA monitor traffic going to and from government civilian networks to protect the networks from malicious code and activity, according to a Washington Post story on Friday.

Given the NSA’s involvement in the Bush administration’s warrantless eavesdropping program, critics are concerned that the monitoring of government traffic on private-sector telecommunication networks that are used by the general public would allow the agency to once again spy on large swaths of non-government traffic without a warrant."

Share | AllPennyStocks.com Announces Corporate Write-Up on Nitro Petroleum Inc. (OTCBB:NTRO)

http://www.baystreet.ca/users/newswire/viewarticle.aspx?id=362637

Interesting oil company. No, its not BP.

The Arithmetic Adds Up to a Greek Restructuring

http://online.wsj.com/article/SB10001424052748704269204575270542452965672.html?mod=WSJ_latestheadlines

This needs to happen, it probably will not, but it needs to.

U.S. stocks fall, end May with 8% loss

http://www.marketwatch.com/story/us-stocks-fall-end-may-with-8-loss-2010-05-29?reflink=MW_news_stmp

There will be another stimulus. Write it down.

Why Are We Wasting Money on the Financial Crisis Commission?

http://www.theatlantic.com/business/archive/2010/05/why-are-we-wasting-money-on-the-financial-crisis-commission/57387/

While I do not want the government bailing anyone out (as the author suggests) it is interesting to note that this group that is trying to enforce transparency on wall street, refuses to disclose its own books. Thank you government, for wasting money and not being accountable.

Bank of Florida’s Lenders Closed as Bank Failures Climb to 78

http://www.businessweek.com/news/2010-05-29/bank-of-florida-s-lenders-closed-as-bank-failures-climb-to-78.html


Recovery is imminent

Chris Christie vs. Teachers Unions

http://www.youtube.com/watch?v=yuri7p_9pm4&feature=aso

The end is classic: "And that is why the union has no credibility, stupid statements like that"

Chris Christie 1, Rita Wilson -111

By the way, she makes 86k a year, and that is not counting health benefits or pension plans. I feel really really really bad for her.

Geithner tells Europe: emulate China

http://www.smh.com.au/business/world-business/geithner-tells-europe-emulate-china-20100528-wiam.html

Hey Geithner, how about you start implementing policies that would make the USA more like China (at least economically) and stop worrying about Europe, if it was not for their problems, the whole world would know how screwed the USA is going to be. But hey you are the genius, not me.

China Hints at Shift on Ship-Sinking Stance

http://online.wsj.com/article/SB10001424052748704596504575272152006762206.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsSecond

China is shifting old alliances, little by little, slowly but surely.

Big Stock Ideas for Big Profit

http://www.fool.com/investing/high-growth/2010/05/28/big-stock-ideas-for-big-profit.aspx?source=ihpsitth0000003


From the article:


I'm going to warn you right away: The type of opportunities I'm about to tell you about may not be for you. They're only for a certain type of investor.

If you're the type of person who prefers to hit for average, click here for some good advice.

Jobless aid set to expire despite House approval

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20100528&id=11550374

Please, we can tax our way out of this. Take all my money!

U.S. Economy: Spending Pauses as Households Save More

http://www.businessweek.com/news/2010-05-28/u-s-economy-spending-pauses-as-households-save-more-update1-.html

We need more of this, no matter what interest rates are.

Spain’s Downgrade Caps a Down Month for Stocks

http://www.nytimes.com/2010/05/29/business/29markets.html?src=mv

Spain before Portugal is about the only thing surprising about this story.

Sestak says Clinton chat under a minute

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/28/AR2010052802879.html


Good old politics.

Greek Scramble For Physical Brings Gold Price To $1,700 Per Ounce

http://www.zerohedge.com/article/greek-scramble-physical-brings-gold-price-1700-ounce

Something like this would never happen in Europe, never. It is just fear mongering to say that it could happen there.

Reserve Bank in link to graft and hookers

http://www.news.com.au/business/reserve-bank-in-link-to-graft-and-hookers/story-e6frfm1i-1225870357544

Oh government, how you love your hookers just like everyone else. You just keep pretending that you dont.

In real money, British house prices are down by 70%

http://www.moneyweek.com/investments/property/uk-house-prices-in-ounces-of-gold-02110.aspx

Wow.

This week's Mutual Funds and ETF stories

http://www.marketwatch.com/story/bearish-sentiment-is-good-news-for-investors-2010-05-27?siteid=rss#mod=BOL_hpp_BOL2MW

Financials Lead Australia, Korea Up

http://online.wsj.com/article/SB10001424052748704269204575271281126595488.html?mod=WSJ_hpp_sections_markets

Tax Evasion, Corruption, and the European Bailout

http://emac.blogs.foxbusiness.com/2010/05/27/tax-evasion-corruption-and-european-bailout?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogs%2Femac+%28Blogs+-+EMac%27s+Stock+Watch%29

Go Greece Go!

Heinz pours on a 9.8 pct rise in 4Q net income

http://finance.yahoo.com/news/Heinz-pours-on-a-98-pct-rise-apf-3598308020.html?x=0&sec=topStories&pos=5&asset=&ccode=

Spiking sales in emerging markets help Heinz 4Q net income rise 9.8 percent

Senate OKs war funding; House to cut spending bill

http://finance.yahoo.com/news/Senate-OKs-war-funding-House-apf-3890744715.html?x=0&sec=topStories&pos=main&asset=&ccode=

I thought Obama ran on ending these wars?

Asia Pacific markets

http://www.busrep.co.za/index.php?fArticleId=5487980&fSectionId=630&fSetId=662

Good news for Asia.

Goldman Says Buy Microsoft as Apple Overtakes Stock

http://www.businessweek.com/news/2010-05-27/goldman-says-buy-microsoft-as-apple-overtakes-stock-update2-.html

It did just lose alot of value, so it might be a good short term buy.

Mutual Fund I am looking into...

http://www.ephasiafunds.com/

Euro Pacific Capital, Inc., Halter Financial Investments L.P. and the management team created a registered investment advisor called Euro Pacific Halter Asia Management, Inc. (“EPHAM”). EPHAM is launching the EPH China Fund, a mutual fund based on Peter Schiff’s investment philosophy focused exclusively on investing in China and its Special Administrative Regions. The EPH China Fund is a value-oriented strategy with a long-term focus on financially sound, stable but growing, dividend-paying Chinese companies.

Not making any recommendation, just letting you know I am looking into it.

When Will the Eurozone Collapse?

http://www.cato.org/pub_display.php?pub_id=11838

Written by Václav Klaus, who is the President of the Czech Republic, which refused to be part of the Eurozone, obviously know he looks smart, but boy was he criticized at the time like crazy.

Stocks fade late as euro sinks; Dow ends under 10K

http://finance.yahoo.com/news/Stocks-fade-late-as-euro-apf-353744086.html?x=0&sec=topStories&pos=5&asset=&ccode=

This is the best economic "recovery" I have ever been apart of. I do not know why I can not shake the feeling that this is all just a big joke. Oh wait, that is because there is no recovery, just more debt and more government failure.

IRS 'Wealth Squads' On The Way

http://www.forbes.com/2010/05/26/irs-wealthy-audits-offshore-hedge-fund-personal-finance-rocen.html?boxes=Homepagechannels

They should call them "IRS CAPITAL HIT SQUADS: DESTROYING PRIVATE CAPITAL" But ti was too long, so they went with "Wealth Squads" instead. Either way what a bunch of pricks.

Shares of Silvercorp Metals Inc. (SVM) Failed to Break the Resistance Line

http://www.marketintellisearch.com/articles/1017105.html

Article on one of Peter Schiff's Stock Picks from about five months ago.

Japan's Exports Jump 40% In April; Trade Surplus Swells

http://online.wsj.com/article/BT-CO-20100526-717041.html?mod=WSJ_latestheadlines

Why Housing is Headed for Second-Half Headaches

http://finance.yahoo.com/news/Why-Housing-is-Headed-for-usnews-3020690600.html?x=0

How Kindle will compete with the iPad

http://tech.fortune.cnn.com/2010/05/25/how-kindle-will-compete-with-the-ipad/

By not competing

American Jobbery Act

http://online.wsj.com/article/SB10001424052748704113504575264532051783298.html?mod=WSJ_hp_mostpop_read

Check out the spending on this bill. Senator Hatch co-authored it. The last two things on are the only things that have anything do with Job Creation, which the government sucks at anyway. But seriously what a STUPID WASTE OF MONEY. That we BORROWED because we are so damn BROKE.

Legendary Investor Is More Worried Than Ever

http://online.wsj.com/article/SB10001424052748704167704575258442772338282.html?mod=loomia&loomia_si=t0:a16:g2:r3:c0.050819:b34254968?partner=yahoofinance

Best quote from the article: You could have heard a pin drop as Mr. Klarman proclaimed, "I am more worried about the world, more broadly, than I ever have been in my career." That's because you can make good investing decisions and still end up with bad results if you reap your profits in currencies that do not hold their purchasing power, he explained.

"Will money be worth anything," asked Mr. Klarman, "if governments keep intervening anytime there's a crisis to prop things up?"

America -- The Bell Tolls for Thee

http://finance.yahoo.com/news/America-The-Bell-Tolls-for-tsmf-3305173800.html;_ylt=AlGwoNWVSla08CtpOlSRCXi7YWsA;_ylu=X3oDMTFhbWE5a29jBHBvcwM5BHNlYwNzcGVjaWFsRmVhdHVyZXMEc2xrA2FtZXJpY2EtLXRoZQ--?x=0

First comes Greece, Then Comes Spain, Them Comes America in a, a, I had something for this....

Euro falls again as fear rules

http://www.reuters.com/article/idUSTRE64K0JX20100526?type=ousivMolt

That bailout really saved the currency....

Private pay shrinks to historic lows as gov't payouts rise

http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm

Gold

Gold is doing so well. Can it keep doing well? Would a market correction hurt the gold market?

Peter

http://www.fool.com/investing/general/2010/05/21/how-peter-lynch-destroyed-the-market.aspx?source=ihpdspmra0000001&lidx=5

Some great advice for investors. Has anyone seen what Netflix has been doing? Crazy growth, we all need to keep our eyes open for the next thing that everyone is going to have. Imax home theaters? Ipads? Whatever it may be, buy what people buy.

Please, read this, it will teach you something AND make you laugh.....

--A miner – indeed no entrepreneur – goes into business to make a marginal profit. He goes into business to make a big profit, knowing full well that everything is against him. The marketplace abhors a huge profit margin the way nature abhors a vacuum. Profits are a signal to other competitors to come in and provide a good or service at a cheaper price or in a better way.

--The innovative entrepreneur captures big initial profits by taking big initial risks. His risk ends up benefitting everyone by luring other producers in. The end result for consumers is an industry or goods and services that didn't exist before. That is a social benefit which does not accrue to a corporate bottom line.

--In any event, in a world where public sector salaries are higher, the only real reason to stay in the private sector is that you have a business you want to be in and believe you can make more doing in that way. There are other more ethical and philosophical reasons too, of course. But the government inviting itself to be your partner in business is like a stranger inviting himself into your marriage bed.

--He says it will subsidise your love-making on nights where you have poor performance, saving your marriage from trouble. And on magical nights, he's ...uh...just along for the ride. Because your marriage bed is in his jurisdiction, he's entitled to his fair share of your marital bliss. And please scoot over would you? You're hogging the doona.

--Granted, there is a difference between a spouse and a non-renewable natural resource. Although now that we type that, we are less sure about it than when we first thought about it. But in our metaphor above, where the government intrudes into a pre-existing, consensual, private relationship, it's pretty clear who's getting

From: The Daily Reckoning

Gold Drops but safe haven remains

http://www.reuters.com/article/idUSTRE6495XB20100520?type=ousivMolt

Gold is still money.

Euro Falls for 2nd Day on Concern Europe Debt Crisis Spreading

http://www.businessweek.com/news/2010-05-24/euro-falls-for-2nd-day-on-concern-europe-debt-crisis-spreading.html

Downsizing Government

http://www.downsizinggovernment.org/education/k-12-subsidies

Government has not helped education, it has ruined it. I have a great idea, fire all union teachers, Cut their pension plans, Cut their health care benefits. I am not sure of any industry that is so well taken care of with benefits as government workers are. Open up the free market, what do people think will happen if the government gets out of the way, everyone will stop going to school? NO! Prices will drop and quality will improve just like EVERY OTHER INDUSTRY that the government has NOT been involved in.

I watched a news report on the poor school districts and it annoyed me how teachers are portrayed as always being perfect. All Unions do is eliminate competition so crappy teachers and good teachers are equalized. Good teachers would be paid more and bad teachers would be let go. BYU has no tenure, and I think it has helped them improve the quality of teaching.

Spain Stocks' Year-to-Date Drop at 22%

http://online.wsj.com/article/SB10001424052748704113504575264603835747256.html?

Good old Spaniards.

Defaults on Apartment-Building Loans Set Record for U.S. Banks

http://www.bloomberg.com/apps/news?pid=20601103&sid=a4Zv_

I love recoveries!

GOVERNMENTWIDE PURCHASE CARDS

http://www.gao.gov/new.items/d08333.pdf

This report issued by Government Accountability Office estimated that “nearly 41 percent” of purchase card transactions made from July 1, 2005, through June 30, 2006 failed to meet “basic internal control standards.”

This comes on the heel of this:

http://www.foxnews.com/politics/2010/05/24/government-employees-reportedly-massive-shopping-spree-taxpayer-money-face/

I thought that the benevolent government was more evolved than the rest of us, free from greed, sin, and imperfections.

Brazil stocks rise on post-plunge bargain hunting

http://www.reuters.com/article/idCNN2120675720100521?rpc=44

Fiscal crises threaten Europe's generous benefits

http://finance.yahoo.com/news/Fiscal-crises-threaten-apf-242192521.html?x=0&sec=topStories&pos=2&asset=&ccode=

Socialism is not sustainable whether Europe Runs, the USA runs, or Gandhi runs it. Eventually you just run out of money because people have no motivation to work.

China vetting Morgan Stanley sale of CICC stake: report

http://www.reuters.com/article/idUSTRE64N02A20100524

Good move? Bad move?

Geithner says sees global economy improving

http://www.reuters.com/article/idUSTRE64N0DO20100524

When Tim Geithner says something, you should probably realize the opposite is true.

How to tweak Social Security

http://www.presstelegram.com/opinions/ci_15147777

Awww the stupidity of people. Lets tweak it so it can be around for another 75 years, who cares after that, it is so far away. It is this type of thinking that got us into the mess we are in and the mess we are in is nothing compared to the mess we will be in.

Ailing Spanish Lender Gets a €550 Million Bailout

http://www.nytimes.com/2010/05/24/business/global/24iht-peseta.html?src=busln

One little, two little, three little too big to fail.

Even Young Germans Fantasize About Leaving The Euro Read more: http://www.businessinsider.com/even-young-germans-fantasize-about-leaving-the-euro-201

http://www.businessinsider.com/even-young-germans-fantasize-about-leaving-the-euro-2010-5

Eventually the EU will fall apart, if not in public, it will in private. With the Euro leading the failure. It just does not work, and the strongest country's population wants out. That farewell party keeps moving its date up for the Euro.

Rio Tinto Calls Aussie Mining Tax A Sovereign Risk

http://www.benzinga.com/analyst-ratings/analyst-color/10/05/295796/rio-tinto-calls-aussie-mining-tax-a-sovereign-risk

Good old government, not realizing that capital can flee their markets as fast as it fled to their markets.

Bullish Bets On Oil Reduced

http://www.benzinga.com/general/10/05/295797/bullish-bets-on-oil-reduced

Based on reduced consumption and strength of the dollar. The dollar will strengthen short term. Long term, no way.

Hu Says China to Move Gradually, Independently on Yuan Changes

http://www.businessweek.com/news/2010-05-23/hu-says-china-to-move-gradually-independently-on-yuan-changes.html

They will do it when they want to, and when they do it will hurt us more than them.

Chris Dodd's Carve-outs for Cronies

http://www.cato.org/pub_display.php?pub_id=11719

Obama Stumbled on Wall Street

http://www.cato.org/pub_display.php?pub_id=11733

Dodd's Do-Nothing Financial 'Reform'

http://www.cato.org/pub_display.php?pub_id=11832

Peter Schiff: Stock market, U.S. economy, financial regs, exchange controls

http://www.youtube.com/watch?v=qz0aHQ8KUpQ&playnext_from=TL&videos=wlfC8YC-wf0&feature=sub

Seriously. I love Capital Controls. I love how the American Public is so mystified by Lindsey Lohan and whoever the hell else is in the news that they pay little to no attention to what the HUGE bill that just passed the Senate even says. This is just step 2. Step 1 was in the "Jobs" bill that passed. Step 2 is in this bill. Soon, we will be unable as a nation to invest in foreign anything, be it by complete and outright denial, insane taxation, or regulation that makes it so costly it is not worth it to invest there anyway.

Highway Robbery on Capitol Hill

http://www.fool.com/investing/general/2010/05/18/highway-robbery-on-capitol-hill.aspx?source=ihpsitas0000001&lidx=1

Great article

Yen slips vs. euro, dollar after Japan minister comments

http://www.marketwatch.com/story/yen-slips-vs-rivals-after-japan-minister-warns-2010-05-20

Nobody wants a strong currency.

The Tough Sell of Nuclear Investing

http://finance.yahoo.com/banking-budgeting/article/109609/the-tough-sell-of-nuclear-investing

US, Britain and Germany to discuss debt crisis

http://finance.yahoo.com/news/US-Britain-and-Germany-to-apf-382881013.html?x=0&sec=topStories&pos=main&asset=&ccode=

Idiots guiding idiots.

Fed Assets Reach Record $2.35 Trillion on Mortgage Purchases

http://www.businessweek.com/news/2010-05-20/fed-assets-reach-record-2-35-trillion-on-mortgage-purchases.html

No Comment.

Senate passes financial regulation bill

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/20/AR2010052003503.html

Stupid. Stupid. STUPID. This only hurts small businesses by reducing competition, of course, this is what the cronies in Washington want.

Google premieres Web television gamble

http://www.reuters.com/article/idUSTRE64I67J20100521

I think this is the wave of the future.

Toyota to Acquire $50 Million Stake in Tesla Motors

http://www.businessweek.com/news/2010-05-20/toyota-to-acquire-50-million-stake-in-tesla-motors-update2-.html

Good Move? Bad Move?

‘Pink Panther’ lopes off with £85m of top art tucked under his arm

http://www.timesonline.co.uk/tol/news/world/europe/article7131750.ece

Just interesting news.

Germany, France renew vows on multi-national bank tax

http://www.reuters.com/article/idUSTRE64J4H920100520

We have always been able to tax our way out of a recession, so this is great news and a great idea.

Problem bank list hits 775

http://money.cnn.com/2010/05/20/news/companies/fdic_list/

Can't we just bail all of them out?

Mortgage delinquencies drag on economic recovery

http://hosted.ap.org/dynamic/stories/U/US_HOME_FORECLOSURES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2010-05-19-10-00-42

But really, everything is recovering.

Singapore's GDP rockets 39% as Asian trade soars

http://www.smh.com.au/business/world-business/singapores-gdp-rockets-39-as-asian-trade-soars-20100520-vgwf.html

More good news for Asia

Taiwan Outpaces China as Growth Accelerates to 30-Year High

http://www.bloomberg.com/apps/news?pid=20601080&sid=aI8gdYSC_PHo

As long as China decides not to destroy the tiny little island, they should continue doing great.

More Americans Unexpectedly File Claims for Jobless Benefits

http://www.bloomberg.com/apps/news?pid=20601068&sid=aHZth4tfWaeA

There is a recovery, I promise, it is there. Everyone. Please Believe Me!!!!

Euro hits fresh four-year low vs. dollar in Asian trade

http://www.marketwatch.com/story/euro-hits-fresh-four-year-low-vs-dollar-in-asia-2010-05-18?reflink=MW_news_stmp

Good thing they bailed Greece out. I wonder if I can pre-order any Deutsche Marks?

Geithner Urges China to Ensure ‘Level Playing Field

http://www.businessweek.com/news/2010-05-18/geithner-urges-china-to-ensure-level-playing-field-update2-.html

Good old "never had a real job" Tim Geithner giving advice.

SEC proposes new rules for avoiding market plunges

http://finance.yahoo.com/news/SEC-proposes-new-rules-for-apf-1989906018.html?x=0&sec=topStories&pos=main&asset=&ccode=

I have a crazy idea to decrease the craziness of the market. Don't run up Trillion Dollar deficits, stop passing regulations and raising taxes. I bet that would do more for the market than some stupid idea to stop trades on computers.

Goldman Sachs Advice Hands Clients Losses in 7 of 9 Top Trade

http://www.businessweek.com/news/2010-05-18/goldman-sachs-advice-hands-clients-losses-in-7-of-9-top-trades.html

Investing is a risk. It is a risk worth taking (in my opinion) but it is a risk. So everyone can get it wrong. Sucks for Goldman Though. And who is to say that those companies were not to be held on for a longer time frame anyway?

National Inflation Association New Charts Page

http://inflation.us/charts.html

The National Inflation Association recently updated their Charts page. I checked it out earlier today and the new page has much more comprehensive than their old page and has some really good information on it. Check it out if you have a chance.

Chanos sees more short sale restrictions in Europe

http://www.reuters.com/article/idUSN1816463620100518

Germany banned "naked" short selling today. Interesting read. I do love how everyone blames the market for being smarter than governments.

Treasury takes $1.6 billion loss on Chrysler loan

http://finance.yahoo.com/news/Treasury-takes-16-billion-apf-581812658.html?x=0&sec=topStories&pos=main&asset=&ccode=

Good job government!

61 Senators Perpetuate "Too Big to Fail"

http://www.fool.com/investing/general/2010/05/17/61-senators-perpetuate-too-big-to-fail.aspx?source=ihpsitth0000001

Hatch Voted for it. Bennett down, Hatch to go. Contact your delegate and get this clown out of office.

Why More Investors Like Gold

http://www.kitco.com/ind/Holmes/holmes_may172010A.html

The Revenue Limits of Tax and Spend

http://online.wsj.com/article/SB10001424052748704608104575217870728420184.html

Apparently the obvious has a name: Hauser's Law

IMF warns rich nations to cut debt

http://www.financialpost.com/story.html?id=3029003

I love how the only way to cut debt is to raise taxes. How about you cut government programs and spending? How crazy would that be?

Paulson Hedge Fund Adds to Bank of America Stake

http://www.businessweek.com/news/2010-05-17/paulson-hedge-fund-adds-to-bank-of-america-stake-update2-.html

The guy who made millions betting against the US Housing market, is now betting on one of the banks who had to have a bailout because of it. Interesting read on his reasoning, though the hedge fun he runs still owns more of a Gold Trust than anything else.

Will the iPad Hurt Mac Sales? Too Soon To Say

http://www.pcworld.com/article/196474/will_the_ipad_hurt_mac_sales_too_soon_to_say.html

Interesting read on how Apple might cannibalize its own market, but only time will tell.

Getting To Know Hedge-Like Mutual Funds

http://www.investopedia.com/articles/mutualfund/09/hedge-like-mutual-funds.asp

Interesting article, a different type of mutual fund.

Band-Aids For Everyone

May 12, 2010

Band-Aids For Everyone
By John Browne

As the health of much of the global economy weakens on a daily basis, political leadership increasingly ignores the source of the malady and instead focuses on short term "band-aid" remedies. These measures which may buy a few months, or years, of relative well being, will convince the public that problems have been solved and will thereby take pressure off governments to make the needed structural changes.

The recently announced $1 trillion EU bailout is a perfect example of this "band-aid" approach. The just concluded general election in the United Kingdom is another. The inconclusive UK result, which creates a Conservative/Liberal Democrat coalition, will be an unhappy, unquestionably temporary arrangement. Similarly, the EU bailout will continue to infuriate Northern Europeans, who may ultimately push for a breakup of the Union.

NuLabour (what the center-drifting Labour Party of Tony Blair has been branded) took a spectacular beating as a result of the clumsy stewardship of now former Prime Minister, Gordon Brown. Mr. Brown, whom I knew as a political bruiser in his early days in the House of Commons, had led Britain far down the road to economic ruin. As a very powerful Chancellor of the Exchequer under Tony Blair, he introduced many stealth taxes to finance a wave of high government spending. Seemingly operating as an unelected Prime Minister, he unleashed massive spending programs and interfered with UK banks in ways that worsened the effects of the financial crisis.

After Brown formally succeeded Blair in June of 2007, he soon became one of the most unpopular Prime Ministers in more than a century. The fact that David Cameron and the Conservatives were unable to capitalize on this weakness to secure a massive victory must be seen as a major failure.

Furthermore, Cameron was so anxious for personal power that he accepted a power sharing arrangement with the Liberal Democrats, a party with many key views to the left of NuLabour. This will lead to damaging compromises that, over time, will likely threaten both his parliamentary and grass roots support. Indeed cracks already are showing in the Conservative ranks.

The fragile coalition likely will have little appetite for the tough economic decisions that need to be made, including the adoption of austerity measures that must surely accompany any meaningful attempt to curb the unhealthy deficit. This political paralysis will leave the UK increasingly exposed to default and economically ruinous inflation. Those deemed to be responsible for any continued economic weakness will likely to be voted out in the next election, which could come as soon as 12 months. Labour's status as the opposition party may be brief.

In short, personal ambition has driven Cameron to fall into a major political trap. He would have been well advised to shun a coalition and leave the political costs of acute austerity and abject poverty to a NuLabour/Liberal Democrat coalition who would be cast out at the next election, leaving a much stronger and unencumbered Conservative Party in power for years to come.

The massive EU/ IMF band-aid to insulate default contagion will likely share a similar fate. The move, which will prevent the needed restructuring of the EU's "Club Med" countries, will destroy the Euro and unleash massive inflation. The furious spike in gold prices in the days after the EU capitulation indicates the depth and breadth of this consensus. Worse yet, in exchange for sowing the seeds for disunion, the bailout will achieve nothing significant.

The package may well insulate Greece from market default for some 18 months, but it will do little to change Greek habits. Even at almost a trillion dollars, it will prove insufficient to meet the likely cumulative needs of Portugal, Spain, Italy, Ireland, France and the UK.

Furthermore, despite their leaders' willingness to protect the Club Med and the cohesion of the EU, the German population is increasingly angry. Indeed, as a result of her support for the Greek bailout, Chancellor Merkel suffered a serious electoral setback on May 9th.

In short both the UK conservatives and the EU appear to have been so tempted by achieving or retaining political power within their failed economic models that they have fallen into electoral traps that likely will threaten their political survival within the coming year. They may have bought themselves some time, but little else.

GM wants to sell to more subprime buyers

http://www.msnbc.msn.com/id/37179852/ns/business-autos/

Did we not learn our lesson from housing? Of course, when the independent lenders do not want to, why not have a company that is backed by the "full faith and credit of the US government" take those subprime loaners on. Is it possible to short GM if this gets approved, because seriously, this is just stupid.

Morgan Stanley is now ALSO being investigated by the Feds.

http://www.fool.com/investing/general/2010/05/12/morgan-stanley-wishes-it-werent-like-goldman.aspx?source=ihpsitota0000001&lidx=8

Venezuela To Detail New Currency Trading Rules Monday

http://online.wsj.com/article/BT-CO-20100516-702681.html?mod=WSJ_latestheadlines

The glorious Chavez is leading the country into despair and economic ruin, but hey, he says he is "helping the poor", and he loves criticizing the rich. Well Mr. Chavez, they will leave unless you subsidize them. The country is failing, inflation is running rampant, so here he is, putting regulations to try and stem his own stupid decisions. It will not, the currency will still fail.

Australia Has ‘Room for Negotiation’ on Resource Tax

http://www.businessweek.com/news/2010-05-16/australia-has-room-for-negotiation-on-resource-tax-update1-.html

Hopefully the idiots who have never had a real job (politicians) come to their senses and do not kill the Golden Goose, but I sure do not have a ton of hope.

Don’t Tell Zimbabwe: Argentina Belongs to 25% Inflation Club

http://www.bloomberg.com/apps/news?pid=20601086&sid=aUcCa9tRT.7k

Argentina and Venezuela are leading the world for now.

Asian nations emerge from recession as stronger economic powers

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/13/AR2010051305534.html?sid=ST2010051400182


Whatever market share a company gains during a recession it rarely loses, I wonder if it will hold true for countries?

US faces one of biggest budget crunches in world – IMF

http://blogs.telegraph.co.uk/finance/edmundconway/100005702/us-faces-one-of-biggest-budget-crunches-in-western-world-imf/

Vacation. Germans. Failure of decision making by 3rd parties

I spent the weekend with my wife in Salt Lake, so I took a break from updating the blog. We had a great time and needed the break as the summer season hits up this will be the last break I have before winter time. But back to the news of the day. The euro took at beating and will continue to as the Germans are now (finally) losing faith in the EU.

http://www.timesonline.co.uk/tol/news/world/europe/article7127621.ece

Various analysts saying the euro is finished.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqquuYOAN_sE

I think the euro is the icing on the currency cake, the real cake is going to be the dollar. The USA is in worse shape than Greece, and no one is paying attention to it. It is going to fall, that is for sure, as far as when I do not know, but it will have a final value of wallpaper.

Manufacturing sector keeps expanding (In New Zealand)

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10644651

Good news for them, maybe they do have more to offer than middle earth.

Meltup has been released.

http://inflation.us/videos.html

The National Inflation Association has released a new documentary that I found interesting. I enjoy these guys and agree with most of what they say. Though it is long, it is worth a look.

Buy Japanese!

http://blogs.forbes.com/greatspeculations/2010/05/13/im-buying-japanese-i-really-think-so/?partner=yahootix

Gamble

http://reason.com/archives/2010/05/13/leave-the-gamblers-alone

The government wanting to limit our freedoms once again. I've always considered buying stocks a gamble. So is buying a house, so is dating someone with a different background. It is a bit of a slippery slope. The gambling line is an arbitrary fixture right now with not definite criteria when all is considered. I believe people should be able to smoke if they want to. It's their right in the appropriate place, but now we see huge taxes and fees levied against these people. Morally I object to it, but when someone's freedoms are curtailed, I do not agree.

Motley

http://caps.fool.com/TickerRankings.aspx?filter=7&sortcol=38&sortdir=1&source=ifltnvsnv0000001

These are some of the highest rated picks from the Motley Fool. It pretty much shows you what other people are purchasing right now and is a helpful tool to know when to get into something. This site always has great articles about stocks you might be interested in.

Summary of the Guide to the Best Commodity ETFs

http://www.contrarianprofits.com/guide-to-the-best-commodity-etfs/summary-of-the-guide-to-the-best-commodity-etfs

In my humble opinion, I believe that soft commodity's are going to rise as food prices continue to go up. Food prices will not just go up because of inflation, but also because of the credit crunch as many farmers were unable to get loans for fertilizer (according to Jim Rogers). Any thoughts on the article above?

Silver Wheaton Q1 Profit Nearly Triples, Yet Misses Estimate

http://www.rttnews.com/Content/CanadianNews.aspx?Id=1303455&SM=1

Sure wish I would have invested here.

Canada scores well in tax report

http://www.thestar.com/business/article/808475--canada-scores-well-in-tax-report

This is just sad.

Fed’s Comeback ‘Punch’ Wins Senate Fights on Rates, Oversight

http://www.businessweek.com/news/2010-05-13/fed-s-comeback-punch-wins-senate-fights-on-rates-oversight.html

The government passed legislation that can look into what the Fed did during 2008, but nothing during the future. I think this sums it up best: "I'm a bit confused by a world in which 96 senators think we need to know what the Fed did in 2008 and 2009 but only 37 think we'll need to know what the Fed did in 2012 and 2013."

Get Rid of the Department of Energy

http://www.downsizinggovernment.org/energy

Let us please cut 40 billion dollars in spending. The department of energy was originally founded to reduce our dependence on foreign oil. We are now, since the inception more dependent on foreign oil. Fail.

Unpaid Interns Are Exploited?

http://reason.com/archives/2010/05/06/unpaid-interns-are-exploited

Being that most of us are either college students or just finishing, I wonder what everyone thinks of this. I know that if I got an unpaid internship at Chevron right now I would start giving thanks to the great God above.

Gold

Just got done with the daily reckoning for today. Basically says that as with the great depression we are going to see gold prices soar. Bill may be on to something. In a world where paper money loses all intrinsic and supposed value, the real wealth resides in items that have actual value and purpose. Commodities will see a large rise in value over the next few years. You might have to sit on it for a while, but look to mining and other metal producers for big upswings.

Stock Pick from Inflation.us

http://inflation.us/cde.html

Ticker: CDE

Date of pick: 5/3/2010

Price as of 5/3/2010: $17.92

Senate Rejects Republican-backed Plan For Fannie Mae, Freddie Mac

"Virginia-based Freddie Mac reported a net loss for the first quarter that widened to $7.98 billion or $2.45 per share from $7.8 billion or $2.39 per share in the year-ago period on continued weakness in the housing market. The company also said it was pressing for an additional $10.6 billion in federal funding to stay afloat in the fragile credit environment."


http://www.dailymarkets.com/releases/2010/05/11/senate-rejects-republican-backed-plan-for-fannie-mae-freddie-mac/

Boy I really am glad that the government has rescued the housing market. It is due for a turnaround. All it needs is about 16 billion more dollars to stay afloat in this environment.

Boeing suspends C-17 production in wake of strike

http://www.presstelegram.com/news/ci_15063507

I don't know how many of you guys work for companies that provide a retirement, but I sure as hell don't. No wonder companies are leaving the USA for their manufacturing needs.

Toyota Cutting Production in the USA

http://www.businessweek.com/news/2010-05-11/toyota-plans-to-cut-domestic-production-capacity-20-by-2015.html

Bailout Is ‘Nail in the Coffin’ for Euro, Rogers Says

http://www.businessweek.com/news/2010-05-11/bailout-is-nail-in-the-coffin-for-euro-rogers-says-update1-.html

Like I said earlier, we need to plan a going away party for the Euro, we could use Euro Notes to make the pinata!

Basic Argument for why I believe home prices will fall

http://www.lewrockwell.com/schiff/schiff82.1.html

The Home Front Peter Schiff: Let the Housing Market Crash

http://www.usnews.com/money/blogs/the-home-front/2009/1/23/peter-schiff-let-the-housing-market-crash.html

My Favorite part of the interview: "Initially, Fannie and Freddie's mission was to help houses be affordable. Now, their mission is to keep housing prices expensive."

Good old Government just can not figure out what to do.

Euro slips on EU debt woes, Asian stocks soft

http://www.reuters.com/article/idUSTRE6482ZL20100512

Good thing we bailed Greece out. I wonder when Santa "EU" Claus is going to do when all the other nations have to be bailed out.

China’s Bubble Risk Adds Pressure to Tighten Policy

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWKM9PlTsmsw&pos=3

Fannie Lost $13.1 Billion In 1Q, Needs Another $8.4 Billion Infusion

http://www.foxbusiness.com/story/markets/industries/finance/fannie-mae-lost--billion-quarter/

More great news for the real estate market

Mortgage Holders Owing More Than Homes Are Worth Rise to 23%

http://www.bloomberg.com/apps/news?pid=20601206&sid=allDMOrP8m3M

Probably not a great time to be the real estate market.

JP Morgan Price Manipulation in the Silver Market is being investigated

http://www.businessinsider.com/jpmorgan-silver-manipulation-investigation-2010-5

http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM

Tick Tock Tick Tock

Housing Bubble Explained

http://www.cato.org/pubs/journal/cj29n1/cj29n1-9.pdf

Alot of times with all of the stupid information as well as lack of economic understanding from college professors, people tend to blame capitalism for the crisis. "Wall Street got drunk" according to George W. Bush. This paper clearly explains how it was government involvement (primarily through the Federal Reserve, Congress, and Fiat money) that caused the mess and that we have not had capitalism for a long time.

Corporate Taxes in the USA

http://www.cato.org/pubs/tbb/tbb_62.pdf

Economically this is a huge portion of what is killing us. We are in a credit crunch, which consists of us not having enough capital saved, so what do we do? Tax corporations at a higher rate than the rest of the world. The world can leave us behind, and slowly but surely they will figure that out.

Ecuador 60% tax on oil profits.

http://www.marketwatch.com/story/ecuador-lawmakers-vote-for-60-tax-on-oil-profits

Silver Gold Ratio

http://www.silver-info.com/gold-silver-ratio.htm

Silver Selloff Article

http://www.kitco.com/ind/akerman/may062010.html

New Austrialan Tax makes investing in other countries more attractive

http://www.theaustralian.com.au/business/mining-funds-already-going-offshore/story-e6frg8zx-1225862771468

If this was not the most obvious consequence to the 40% "supertax" I do not know what is. Good old Governments, always making such great decisions. I wonder how many companies will be left to take all of those resources "that all Australians own" in the next coming decades. The government can see that with it all sitting underground, it is going to make no one richer. They should have been happy with what they had. I love that in a great depression around the world the Australians decide to raise taxes on the main industry in their economy (not to mention the one industry that has essentially kept them out of participating in said depression/recession/coming inflationary hellhole). Thank you Mr. Rudd. You have truly inspired me.

Greece today, America Tomorrow

http://www.kitco.com/ind/Mladjenovic/may032010.html

Portugal Downgrade imminent

http://www.reuters.com/article/idUSLDE64421G20100505?type=marketsNews

Thank heaven all of this European taking away from USA debt, which is about ten times worse.

Marc Faber on China and other interesting topics

http://www.youtube.com/watch?v=pnR2OA3A7Cc&playnext_from=TL&videos=qZjwOexCuaM&feature=sub


Interesting look at the state of the market today.

Stock Pick From the Daily Reckoning Today.

(NYSE:ECA)

A natural gas company from Canada

Shorting Japanese Treasuries and buying japanese Small caps?

So, what's my Trade of the Decade now?

Right now, the US Treasury market is out of whack. It's been going up since 1983. And now investors lend money to the world's biggest debtor at what are historically very low interest rates. And they do this at a time when that debtor has begun the biggest borrowing and spending spree in history. This is not normal. It's downright weird.

Sometime within the next 10 years, I figure that the Treasury market will get whacked hard. So on one side of the trade...I'm short US Treasuries.

On the other side of the trade I had more trouble. Because I was looking for something to buy. And nothing is really cheap. Even gold...which seems to be in a bull market...and which I expect to go up much higher...is not cheap. As near as I can tell, an ounce of gold buys about as much - in terms of consumer products - as it did 700 years ago...and maybe even as much as it bought 2,000 years ago.

Gold has already reverted to the mean, after being seriously undervalued in 1999. Now, most likely, it will become over-valued when the current monetary system begins to break up...but that's a different phenomenon. It's not reversion to the mean, at least, not for gold. It's a reversion to the mean of the monetary system... I'll get to that in a moment.

What I needed for the buy side of the trade was something that was historically undervalued. And the best I could come up with was Japanese small cap stocks, which have been going down since 1989. There are some that sell for less than the amount of net cash and current assets that they have in their own company accounts. That is extraordinary. Of course, it could become even more extraordinary. But that's the risk we take. And over 10 years, we hope that that risk - such as it is - comes and goes.

So, that's the new Trade of the Decade. Sell US Treasuries. Buy Japanese small caps.

But I'm going to give you an even better Trade of the Decade. The problem for non-Japanese investors is that the small caps may actually go up...but if the yen goes down you might lose your gains.

So, how about this? Instead of selling US Treasury bonds, sell Japanese government bonds. Japanese bonds are probably even more over-valued than US bonds. And with the Japanese borrowing more than ever...while the Japanese savings rate declines...it seems a fair bet that Japanese government debt will go down at least as much as US debt. Maybe more.

By buying Japanese small caps while selling Japanese bonds you take out the currency risk. You have an even better Trade of the Decade. The Japanese small caps stocks are extraordinarily under-appreciated. The Japanese government debt, on the other hand, is extraordinarily over- appreciated.

But the first point I want to make is that this is just an idea. It's not a substitute for a serious investment strategy.

The second point I want to make is that you can only have a serious investment strategy if you're willing and able to think deeply about ideas. And if you do think about them enough, you'll have a decent chance of doing well...simply because most people - including most serious investment professionals - don't think about them very much. That's what I mean about philosophy...you have to think long and hard about how the world actually works. And history is about the only tool we have to work with.

I'm going to give you 2 examples of what I mean right away.

First, we celebrated an important anniversary in April. It was 2 years ago, in April 2008, that Countrywide Financial went broke. Countrywide was the second biggest subprime lender in the US. When it went down it set in motion a whole series of domino-like bankruptcies that eventually wiped out half the world's capital.

But when Countrywide collapsed, reporters asked Henry Paulson what would happen next. Paulson would seem to be a good person to ask. He was Secretary of the Treasury and formerly the top man at Goldman Sachs. Nobody had more or better information than Paulson. So what did Paulson say?

He said that he could imagine 'no scenario' in which the taxpayer would be called upon to bail out the financial industry.

That was 2008. By the end of 2009, according to Bloomberg's calculation, the federal government had committed more than $8 trillion in taxpayer support, supposedly to prevent the end of the world.

It must have worked. Here we are 2 years later, and the world still exists.

But there's a gap of 8,000 billion numbers between Paulson's estimate and the eventual federal commitment. Which, at the very least, makes you wonder about the people at the top of America's financial intelligentsia...and the methods they use to figure out what is going on.

What does it mean when the best informed, most sophisticated, most knowledgeable financial authorities in the country are completely wrong about what is going on?

Continued tomorrow...

Regards,

Bill Bonner
for The Daily Reckoning Australia






Since I know nothing about this sort of thing, any thoughts from anybody?

Schiff on the Crash of the Dollar

http://www.thestreet.com/video/index.html?bcpid=1155328549&bclid=1111449338&bctid=82541020001#82450970001

Dollar will crash

Greece Bailout Deal Is Reached

http://online.wsj.com/article/SB10001424052748704608104575219430378257618.html?mod=WSJ_article_related

This is TERRIBLE news for the Euro. One of the most shortsighted policies I have seen since the bailouts of 2008. This is the beginning of the end of this currency. Next comes from Portugal, then Spain, then Italy. This is going to be ugly. They should have let them fail. This sets the precedent that countries are too big to fail. What this does do is possibly bode well for the dollar over the short term, but who the hell knows. The Greece can riot all they want, but it will NOT get them out of this situation. Even with the measures, they are still going to be drowning in debt and will need another bailout, in my opinion, within five years, because they will not do what they are agreeing to.

Buffet on Inflation and Greek Worries

http://blogs.wsj.com/marketbeat/2010/05/01/oracle-of-omaha-more-bearish-on-currencies/



http://www.reuters.com/article/idUSN0115427920100501


Buffet is now on our side.

China Report

http://www.europac.net/report/reports/report_chinainfrastructure.pdf

Hopefully you can access this, if not then let me know. It is the Europac report on China and everything that is going on there. I think there are some good things to look at in the growth of China.

China is basically putting all of their stimulus money into infrastructure in hopes of producing more goods in the future. They are looking at more long term growth in alternative fuels and resources. The Chinese government is making loans to people unlike the U.S. banks that temporarily went on hold. No one kind find lenders anymore. Chinese households save near 40% of their income, that is way higher than in the U.S.

The government has spent a ton on a state of the art railway system. Any companies making use of this are sure to have lower prices of transportation.

Energy and agriculture are also huge industries right now.

The article gives four companies, but doesn't name them. We would need to contact a Europac investment consultant to do that. One is solar/wind energy, another is in grain and agriculture, the next is in transportation and the last one is another transportation company.

Do you think we should contact Europac and start an investing club to get in on some of these companies? I think we should discuss it and talk to them soon.